Less Is More For Savvy Car Buyers

Posted by at 13 October 2017, at 12 : 28 PM

Less Is More For Savvy Car Buyers

When buying a car, there is no one factor that’s more important than how it impacts you financially. It’s never sensible to get a car that’s more than you can afford, even if you’re technically able to buy it and take it from the dealer. Beyond knowing your budget, however, you have to consider how to make the budget stretch a little further. Here, we’re going to look at how you can get more bang for your buck under the hood.

Know the market

Never start your search by going directly to the dealer that you plan on buying from. First of all, if you have no idea of what you want from your car, then, you’re more likely to get pushed in whatever direction even if it doesn’t work for you, meaning you end up with a car that doesn’t suit your needs as much as you might think. Narrow down a few options, including the factor of whether you want a new car or a used one. Source a range of prices from multiple dealers so you get a more realistic sense of what the price tag on that vehicle will be. Furthermore, research things like how often your car of choice needs repairs or parts replacements, and how much you can expect to spend on fuel and insurance costs for it.

Pay in cash

This isn’t the most readily available option for every driver. However, if you find you have the cash on hand to pay outright for the car that you want, it’s worth considering it. Buying with cash will always be less expensive than buying with credit. Simply put, financing deals and auto loans will always add interest and often some hidden fees that paying by cash can help you avoid. Of course, if you qualify for some of the most favorable loans out there, then, said interest might not be high enough to make much of a distinction and taking the loan could be more manageable. Buying with cash does offer other advantages, however, in that dealers are a lot more likely to negotiate more on an immediate sale and you will lose less money in depreciation while you might otherwise have a car dropping in value significantly before you’re in full ownership of it and able to resell it.

Less Is More For Savvy Car Buyers

Finance smartly

If you can’t pay in cash, then, you can at least make sure you finance the vehicle in the way that works best for you. Again, it’s all about scanning the market. Knowing what’s available to you is all about checking your credit score before you start applying, however, there are dealers that offer guaranteed financing for those with truly bad credit, but those are only really worth considering if you have zero options and you absolutely need a vehicle now. Otherwise, it’s worth taking the time to work up your credit score. Get financing quotes before you approach the dealer, so you have a better idea of what you can agree to pay. Keep loan terms short in order to avoid higher accumulative interest. Finally, consider saving for a bigger down payment so you have less to pay in the long-term.

Better buy used cars

There’s no denying that you can get a car that’s technically better if you buy used as opposed to new. Depreciation means that you could end up with a used car that you otherwise wouldn’t be able to afford if it was new. But beyond depreciation, there are factors to consider when buying used. The reliability and longevity of a car plays a huge role. For instance, if you find a used Volvo C30 or Toyota Auris, you know that you’re buying a car that is likely to still have plenty of good years left in it. When going used, always consider the state of the car and its reputation for reliability above the other more emotionally appealing features.

Less Is More For Savvy Car Buyers

Take it for a spin

You might not even want to buy it. Leasing a car is becoming a more widely used option as more people find themselves unable to afford truly owning a car. Just as a budget can go farther on a used car than a new one, that budget can also go farther on a leased car than a bought one.

Make sure the car is right for you

There are plenty of reputable used car dealers out there, but they’re not always fully aware of whether a car is entirely up to standard. Inspecting used cars is a vital part of the process. The test drive isn’t just to see how well you like the seats, the steering, or the drive comfort. It’s your chance to keep an eye and ear out for signs that the car has seen some wear and tear that hasn’t been addressed. You should include an inspection from a mechanic as part of your buying budget as well. Otherwise, you may very well miss some issues that could ratchet up the real price through repairs and replacements.

Less Is More For Savvy Car Buyers

Know how to haggle

Negotiating can be just as important in helping you make the car you want a little more affordable. While it’s important to go in with the understanding that you probably can’t drastically alter a car’s price, you can make savings here and there. Again, the research you did earlier can help you know a more realistic price than what the dealer’s asking. Be resilient against the many offers of extended warranties and add-ons too. Don’t accept any extras unless you’re 100% certain you need them and you can’t get them from elsewhere. Get a history check done on a car to see if there are any problematic parts of its past, such as involvement of accidents, that haven’t been included in the advertising, as well. Knowledge is power when it comes to negotiating, so gather as much as you can.

Know precisely what kind of prices you can expect, what options are available in terms of ending up with the car you want, how it impacts your long-term finances, and how you might be able to find some wiggle room. These are the essentials of being a better buyer in the automobile market.

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